South Asian imported ferrous scrap prices rose further on global cues. Pakistani buyers remained active for containerised scrap trades. Indian mills were also interested in imported HMS scrap on Tuesday. Gradually increasing production rates in these two countries generated demand for ferrous scrap amid limited raw material inventories with mills.
Steelmakers in Bangladesh, however, opted for domestic ship breaking scrap, priced lower compared to imported material, buying only to satiate their immediate need.
The daily Davis Index for containerized shredded, Tuesday, settled at $288.6/mt cfr India subcontinent, up by $1.6/mt from $287/mt cfr India subcontinent.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $267.95/mt cfr India subcontinent, up by $1.1/mt from $266.85/mt cfr.
The Davis Index for US-origin HMS 1&2 (80:20) on Monday settled at $264.92/mt cfr Turkey, up by $4.72/mt from Friday and by $8.67/mt from the prior week. This rise in prices supported imported scrap offers in South Asian markets.
Pakistan
Finished steel demand in Pakistan has improved considerably from the last month when the country remained under a stringent lockdown. Although a few stalled infrastructure projects are yet to resume, market participants expect demand to return to the pre-COVID-19 levels in the coming weeks.
The Davis Index for US-origin containerized shredded settled at $292/mt cfr Port Qasim Tuesday, up by $1/mt from Monday. Trades for US-origin shredded were at $288-290/mt cfr Qasim. A few supplier yards in UK/Europe sold shredded at $292-295/mt cfr Qasim in the last two days.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $285/mt cfr Qasim, up by $3/mt from Monday. There were only a handful of suppliers offering UAE material in the market. Trades for UAE-origin HMS 1&2 (80:20) were at $285/mt cfr Qasim. Offers for a mix of #1 HMS and P&S were in the range of $290-295/mt cfr Qasim on Monday.
The daily index for US-origin HMS 1&2 (80:20) was at $270/mt cfr Qasim, up by $2/mt. Trades for US-origin HMS 1&2 (80:20) were reported at $268-270/mt cfr Qasim.
Prices for commercial Bala billet dropped to PKR93,00/mt ex-works Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were reported at PKR72,500/mt delivered Lahore mill.
India
Indian mills were open to raising bids and meet present offer levels for HMS scrap. Mills in Mumbai raised their export prices for hot-rolled plates by a maximum of $30/mt from Monday. Demand for billets in many global markets also remained healthy. Billet exports are likely to continue for a couple of months with sustained demand from China and Southeast Asia.
The daily Davis Index for containerized shredded Monday settled at $286/mt cfr Nhava Sheva, up by $3/mt from last Monday. Offers for US-origin containerized shredded were at $288-293/mt cfr Nhava Sheva.
Considering the bullish global ferrous market, suppliers are unlikely to offer shredded below $285-287/mt cfr Nhava Sheva. Offers for bulk HMS 1&2 (80:20) were at $280/mt cfr Nhava Sheva, with no buyers interested in those levels. Freight charges for bulk and containers increased despite the easing of container shortage.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $266/mt cfr Nhava Sheva, up by $3/mt from Monday. Most UAE suppliers, however, preferred to sell material in Pakistan for higher prices.
A few trades for Brazilian HMS 1&2 (80:20) were at $260/mt cfr Mundra and Nhava Sheva on Monday.
The index for US-origin HMS 1&2 (80:20) settled at $266/mt cfr Nhava Sheva, up by $1/mt from Monday. Suppliers are offering the grade at $267-270/mt cfr Nhava Sheva.
Bangladesh
Domestic billet and rebar prices fell by BDT500-1,000/mt since Friday on subdued demand. Steelmakers thus looked to lower their input costs. Projects remain stalled due to a rise in COVID-19 cases impacting finished steel. The Eid-al-Adha holidays next week may further slow trading next week.
The Davis Index for US-origin containerized shredded settled at $297/mt cfr Chattogram, unchanged from Monday. Offers from Europe and UK yards were at $300/mt cfr Chattogram. But Dhaka-based mills booked Australia and New Zealand-origin shredded at prices in the range $285-290/mt cfr Chattogram late week.
The index for Latin America-origin HMS 1&2 (80:20) settled at $280/mt cfr Chattogram, up by $2/mt from Monday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, unchanged from Monday, with trades reported in the range of $285/mt cfr Chattogram. On Monday, a few supplier yards offered the grade at prices above $290/mt cfr Chattogram.
Market update
Taiwan
Imported ferrous scrap prices were unchanged on Tuesday.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled flat at $242/mt cfr Taiwan. Market participants are expecting offers for imported scrap to firm up in the coming days on the back of the bullish Turkish market. The rise is also likely to have a bearing on domestic scrap prices.
Offers for US-origin HMS 1&2 (80:20) were at $245-250/mt cfr on Tuesday with no trades heard. Taiwanese steel manufacturers believe the recently announced government budget could boost demand. Its effect, however, will reflect from September. Steelmakers predict finished steel demand to be sluggish and tighten the spread between scrap and finished steel amid rising prices for the former.
In small bulk markets, bids for Japanese HMS 1&2 (50:50) were at $255-260/mt cfr, up by $5/mt from late last week. Japanese exporters are expecting ferrous scrap prices to rise further since a leading trader offered the grade at $262/mt cfr Taiwan in small bulk cargoes.
($1=Rs74.62; BDT84.79; PKR168.49; TWD29.44)